United Natural Foods, Inc. (Nasdaq: UNFI) (“UNFI” or the “Company”)
announced today that it has extended its primary wholesale grocery
distribution relationship with Whole Foods Market, Inc. (Nasdaq: WFM) by
entering into a new primary distribution agreement. The term of the
primary distribution agreement between the parties now runs until
September 25, 2025, compared to the prior agreement which was set to
expire in September, 2020.
About United Natural Foods
United Natural Foods, Inc. carries and distributes more than 85,000
products to more than 40,000 customer locations throughout the United
States and Canada. The Company serves a wide variety of retail formats
including conventional supermarket chains, natural product superstores,
independent retail operators and the food service channel. United
Natural Foods, Inc. was ranked by Forbes Magazine in 2014 as one of
“America's Best Managed Companies,” ranked by Fortune in 2012 as one of
its “Most Admired American Companies,” and chosen by Food Logistics
Magazine as one of its 2013 Top 20 Green Providers.
For more information on United Natural Foods, Inc., visit the Company’s
website at www.unfi.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: Statements in this press release regarding the Company’s
business that are not historical facts are “forward-looking statements”
that involve risks and uncertainties and are based on current
expectations and management estimates; actual results may differ
materially. The risks and uncertainties which could impact these
statements are described in the Company’s filings under the Securities
Exchange Act of 1934, as amended, including its annual report on Form
10-K filed with the Securities and Exchange Commission (SEC) on
September 30, 2015 and other filings the Company makes with the SEC, and
include, but are not limited to, the Company’s dependence on principal
customers; the Company’s sensitivity to general economic conditions,
including the current economic environment; changes in disposable income
levels and consumer spending trends; the Company’s ability to reduce its
expenses in amounts sufficient to offset its increased focus on sales to
conventional supermarkets and the shift in the Company’s product mix as
a result of its acquisition of Tony’s Fine Foods (“Tony’s”) and the
resulting lower gross margins on those sales; the Company’s reliance on
the continued growth in sales of natural and organic foods and non-food
products in comparison to conventional products; the Company’s ability
to timely and successfully deploy its warehouse management system
throughout its distribution centers and its transportation management
system across the Company; the addition or loss of significant
customers; volatility in fuel cost; the Company’s ability to
successfully consummate its expense reduction efforts in connection with
the previously announced termination of a contractual customer
relationship within the expected timeframe and cost estimates currently
contemplated; the Company’s sensitivity to inflationary and deflationary
pressures; the relatively low margins and economic sensitivity of the
Company’s business; the potential for disruptions in the Company’s
supply chain by circumstances beyond its control; the risk of
interruption of supplies due to lack of long-term contracts, severe
weather, work stoppages or otherwise; consumer demand for natural and
organic products outpacing suppliers’ ability to produce those products;
union-organizing activities that could cause labor relations
difficulties and increased costs; the ability to identify and
successfully complete acquisitions of other natural, organic and
specialty food and non-food products distributors; management’s
allocation of capital and the timing of capital expenditures; and the
Company’s ability to successfully deploy its operational initiatives to
achieve synergies from the acquisition of Tony’s. Any forward-looking
statements are made pursuant to the Private Securities Litigation Reform
Act of 1995 and, as such, speak only as of the date made. The Company is
not undertaking to update any information in the foregoing reports until
the effective date of its future reports required by applicable laws.
Any projections of future results of operations are based on a number of
assumptions, many of which are outside the Company’s control and should
not be construed in any manner as a guarantee that such results will in
fact occur. These projections are subject to change and could differ
materially from final reported results. The Company may from time to
time update these publicly announced projections, but it is not
obligated to do so.
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